BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
-
Upload
stimulatingbroadbandcom -
Category
Documents
-
view
222 -
download
0
Transcript of BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
1/116
1
PLEASE NOTE: Though it is not intended or expected, should any discrepancy occur betweenthe document here and that published in the Federal Register, the Federal Registerpublicationcontrols. This notice is being made available through the Internet solely as a means to facilitate
the publics access to this document.
Billing Code 3510-60-P
DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
Broadband Technology Opportunities Program
Docket No.: 0907141137-0024-06
RIN: 0660-ZA28
AGENCY: National Telecommunications and Information Administration (NTIA), U.S.
Department of Commerce.
ACTION: Notice of Funds Availability (NOFA) and solicitation of applications.
SUMMARY: NTIA announces general policy and application procedures for the Broadband
Technology Opportunities Program (BTOP or Program) that the agency established pursuant to
the American Recovery and Reinvestment Act of 2009 (Recovery Act). BTOP provides grants
for deploying broadband infrastructure in unserved and underserved areas of the United States,
enhancing broadband capacity at public computer centers, and promoting sustainable broadband
adoption projects. In facilitating the expansion of broadband communications services and
infrastructure, BTOP advances the objectives of the Recovery Act to spur job creation and
stimulate long-term economic growth and opportunity.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
2/116
2
DATES: All applications for funding BTOP projects must be submitted between February 16,
2010, at 8:00 a.m. Eastern Standard Time (EST) and March 15, 2010, at 5:00 p.m. Eastern
Daylight Time (EDT).
ADDRESSES: The application packages for electronic submissions will be available at
http://www.broadbandusa.gov. See Supplementary Information for more details.
FOR FURTHER INFORMATION CONTACT: For general inquiries regarding BTOP or
questions regarding this NOFA, contact Anthony Wilhelm, Director, BTOP, Office of
Telecommunications and Information Applications, National Telecommunications and
Information Administration, U.S. Department of Commerce (DOC), 1401 Constitution Avenue,
N.W., HCHB, Room 4887, Washington, D.C. 20230; Help Desk email:
[email protected], Help Desk telephone: 1-877-508-8364. Additional information
regarding BTOP may be obtained athttp://www.ntia.doc.gov/broadbandgrants/. For inquiries
regarding BTOP compliance requirements, including applicable federal rules and regulations
protecting against fraud, waste, and abuse, [email protected]. Additional
information regarding compliance for BTOP may be obtained at
http://www.broadbandusa.gov/compliance.htm.
AUTHORITY: This notice is issued pursuant to the American Recovery and Reinvestment Act
of 2009, Pub. L. No. 111-5, 123 Stat. 115 (2009).
SUPPLEMENTARY INFORMATION:
Electronic submissions: Electronic submissions of applications will allow for the expeditious
review of an applicants proposal consistent with the goals of the Recovery Act. As a result, all
applicants are required to submit their applications electronically at
https://applyonline.broadbandusa.gov. The electronic application system will provide a date-
http://www.broadbandusa.gov/http://www.broadbandusa.gov/mailto:[email protected]:[email protected]://www.ntia.doc.gov/broadbandgrants/http://www.ntia.doc.gov/broadbandgrants/http://www.ntia.doc.gov/broadbandgrants/mailto:[email protected]:[email protected]:[email protected]://www.broadbandusa.gov/compliance.htmhttp://www.broadbandusa.gov/compliance.htmhttps://applyonline.broadbandusa.gov/https://applyonline.broadbandusa.gov/https://applyonline.broadbandusa.gov/http://www.broadbandusa.gov/compliance.htmmailto:[email protected]://www.ntia.doc.gov/broadbandgrants/mailto:[email protected]://www.broadbandusa.gov/ -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
3/116
3
and-time-stamped confirmation number that will serve as proof of submission. Please note that
applications will not be accepted via paper, facsimile machine transmission, electronic mail, or
other media format. Applicants, however, may request a waiver of these filing instructions
pursuant to Section X.N. of this NOFA.
Catalog of Federal Domestic Assistance (CFDA) Number: Broadband Technology
Opportunities Program (BTOP)11.557.
Additional Items in Supplementary Information.
I. Overview: Describes the broadband initiatives in the Recovery Act, the first round of
funding, and an overview of the next round of funding.
II. Funding Opportunity Description: Provides a more thorough description of BTOP and the
funding priorities.
III. Definitions: Sets forth the key statutory terms and other terms used in BTOP.
IV. Award Information: Describes funding availability, grant terms, as applicable, and other
award information.
V. Eligibility Information and General Program Requirements: Establishes eligibility criteria,
eligible and ineligible costs, and general program requirements.
VI. Application and Submission Information: Provides information regarding how to apply,
application materials, and the application process.
VII. Application Review Information: Establishes the evaluation criteria for application review.
VIII. Anticipated Announcement and Award Dates: Identifies the initial announcement date for
certain awards and provides other information regarding BTOP.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
4/116
4
IX. Award Administration Information: Provides award notice information, administrative and
national policy requirements, terms and conditions, and other reporting requirements for award
recipients.
X. Other Information: Sets forth guidance on funding, compliance with various laws,
confidentiality, discretionary awards, and authorized signatures.
I. Overview
A. American Recovery and Reinvestment Act of 2009 (Recovery Act)
On February 17, 2009, President Obama signed the Recovery Act into law.1 The
essential goal of the Recovery Act is to provide a direct fiscal boost to help lift our Nation from
the greatest economic crisis in our lifetimes and lay the foundation for future growth.2
Accordingly, the Recovery Act identifies five overall purposes: to preserve and create jobs and
promote economic recovery; to assist those most impacted by the current economic recession; to
provide investments needed to increase economic efficiency by spurring technological advances
in science and health; to invest in transportation, environmental protection, and other
infrastructure that will provide long-term economic benefits; and to stabilize state and local
government budgets.3
The Recovery Act further instructs the President and the heads of federal
departments and agencies to manage and expend Recovery Act funds to achieve these five
purposes, commencing expenditures and activities as quickly as possible consistent with
prudent management.4
1 American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, 123 Stat. 115 (2009) (Recovery Act).2 Statement on Signing the American Recovery and Reinvestment Act of 2009, Daily Comp. of Pres. Doc., 2009
DCPD No. 00088, at 1 (Feb. 17, 2009), http://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-
200900088.pdf.3 Recovery Act 3(a), 123 Stat. at 11516.4 Seeid. 3(b), 123 Stat. at 116.
http://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-200900088.pdfhttp://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-200900088.pdfhttp://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-200900088.pdfhttp://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-200900088.pdfhttp://fdsys.gpo.gov/fdsys/pkg/DCPD-200900088/pdf/DCPD-200900088.pdf -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
5/116
5
Consistent with the purposes described above, the Recovery Act provides the U.S.
Department of Agricultures Rural Utilities Service (RUS) and the National Telecommunications
and Information Administration (NTIA) with $7.2 billion to expand access to broadband services
in the United States. In so doing, the Recovery Act recognizes the growing importance of access
to broadband services to economic development and to the quality of life of all Americans.
The Recovery Act provides $4.7 billion to NTIA to establish the Broadband Technology
Opportunities Program (BTOP or Program) and directs that these funds be awarded by
September 30, 2010. This amount represents a significant investment to advance President
Obamas national broadband strategy. Of these funds, at least $200 million will be made
available for competitive grants for expanding public computer center capacity; at least $250
million will be made available for competitive grants for innovative programs to encourage
sustainable adoption of broadband services; and up to $350 million will be made available to
fund the State Broadband Data and Development Grant Program (Broadband Mapping Program)
authorized by the Broadband Data Improvement Act.5 The Broadband Mapping Program is
designed to support the development and maintenance of a nationwide broadband map for use by
policymakers and consumers.6
B. Round One
In response to the first Notice of Funds Availability (First NOFA), RUS and NTIA
received almost 2,200 applications requesting nearly $28 billion in funding for proposed
broadband projects reaching all states, five territories, and the District of Columbia.7
When
including about $10.5 billion in matching funds committed by the applicants, these applications
5 Pub. L. No. 110-385, 122 Stat. 4096 (to be codified at 47 U.S.C. 1301 et seq.).6 See State Broadband Data and Development Grant Program, Notice of Funds Availability and Solicitation ofApplications, 74 Fed. Reg. 32545 (July 8, 2009).7 Notice of Funds Availability and Solicitation of Applications, 74 Fed. Reg. 33104 (July 9, 2009).
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
6/116
6
represent more than $38 billion in proposed broadband projects. RUS and NTIA received
applications from a diverse range of parties, including: state, tribal, and local governments;
nonprofits; industry; small businesses; community anchor institutions such as libraries,
universities, community colleges, and hospitals; public safety organizations; and other entities in
rural, suburban, and urban areas. Parties submitted more than 830 applications jointly to RUSs
Broadband Initiatives Program (BIP) and NTIAs BTOP, requesting nearly $12.8 billion in
infrastructure funding. NTIA received an additional 260 infrastructure applications that sought
only BTOP funding, requesting more than $5.4 billion in grants for broadband infrastructure
projects in unserved and underserved areas. Parties submitted more than 360 applications to
NTIA requesting more than $1.9 billion in grants from BTOP for public computer center
projects. In addition, parties filed more than 320 applications with NTIA requesting nearly $2.5
billion in grants from BTOP for projects that promote sustainable demand for broadband
services.
On December 17, 2009, NTIA announced the first set of awards out of the $1.6 billion
that was allocated for the first round of funding. These awards, as well as additional awards
announced by Secretary Locke on January 13, 2010, totaled approximately $137 million for
investments in ten broadband projects benefitting ten states.8 Of these awards, $119 million was
dedicated for Middle Mile projects; $15.9 million for Public Computer Center projects; and $2.4
million for Sustainable Broadband Adoption projects. Additional awards will be announced on a
rolling basis.
8 White House Press Release, Vice President Biden Kicks Off $7.2 Billion Recovery Act Broadband Program(December 17, 2009), available athttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-program. Department of Commerce Press Release, Commerce Secretary GaryLocke Announces $7.5 Million Investment to Increase Broadband Access in Los Angeles (January 13, 2010),available athttp:/;/www.commerce.gov/newsroom/pressreleases_factsheets/prod01_008797.
http://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-programhttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-programhttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-programhttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-programhttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-programhttp://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-program -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
7/116
7
C. Round Two
1. Funding Process
The purpose of this NOFA is to describe the availability of BTOP funds for the second
round of funding and set forth the application requirements for those entities wishing to
participate in the Program. Applicants are permitted to apply to one or more of the project
categories. Each application will be screened for initial eligibility. Those eligible applications
that satisfy the statutory purposes and funding priorities will be prioritized and evaluated against
objective evaluation criteria to determine whether an award may be merited. Applications that
satisfy the BTOP priorities and score highly when evaluated against the objective evaluation
criteria will advance to the due diligence stage of review, where NTIA may request additional
information and adjustments to the proposal. From this pool of applications, NTIA will select
awardees based on the selection factors. NTIA anticipates completing this round of funding as
quickly as possible to maximize the stimulative effect of the Recovery Act. NTIA also is
committed to transparency and fairness in the award process and will require rigorous reporting
to ensure prudent stewardship of taxpayer funds.
2. Request for Information (RFI)
To prepare for this round of funding, on November 10, 2009, RUS and NTIA released a
second joint request for information seeking public comment on ways to enhance the applicant
experience through targeted revisions to the First NOFA.9
RUS and NTIA received
approximately 225comments from institutions and individuals on a wide range of topics, and
these comments have played an important role in developing this NOFA. For further discussion
9 Joint Request for Information (RFI), 74 Fed. Reg. 58940 (Nov. 16, 2009).
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
8/116
8
and explanation of NTIAs reliance on the public comments in the policy decisions involved in
BTOP, see the attached Policy Justification found in the Appendix at the end of this NOFA.
3. Project Categories
For this round of funding, NTIA will award grants in three categories of eligible projects:
Comprehensive Community Infrastructure (CCI), Public Computer Centers (PCC), and
Sustainable Broadband Adoption (SBA).10 The CCI category will focus on Middle Mile
broadband infrastructure projects that offer new or substantially upgraded connections to
community anchor institutions, especially community colleges. The PCC category will help
expand public access to broadband service and enhance broadband capacity at entities that
permit the public to use these computing centers, such as community colleges and public
libraries.11
The SBA categorywill fund innovative projects that promote broadband demand,
including projects focused on providing broadband education, awareness, training, access,
equipment, or support, particularly among vulnerable population groups that traditionally have
underutilized broadband technology.12
NTIA plans to award all remaining BTOP grants funded by the Recovery Act in this
round of funding. Approximately $2.6 billion of program-level funding has been allocated to
this NOFA by NTIA. NTIA intends to award approximately $2.35 billion for CCI projects, at
least $150 million for PCC projects, and at least $100 million for SBA projects.
4. Changes from the First NOFA
Based on the comments received in response to the second RFI and the experience gained
from administering the first round of funding, NTIA is making a number of changes to the
10 See Recovery Act Div. A, Tit. II, 123 Stat. at 128.11Id. Div. A, Tit. II & 6001(b)(3), 123 Stat. at 128, 51213.12Id. Div. A, Tit. II & 6001(b)(5), 123 Stat. at 128, 513.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
9/116
9
Program. The goals of these changes are to increase efficiency, sharpen the Programs funding
focus, and improve the applicant experience.
In the first round, RUS and NTIA issued a joint BIP/BTOP NOFA to promote
coordination between these programs. The agencies gave applicants the option to file a single
application for infrastructure projects for both programs. For the second round of funding, RUS
and NTIA have decided to issue separate NOFAs for BIP and BTOP to better promote each
agencys distinct objectives. The joint application process was burdensome for some applicants.
Therefore, RUS and NTIA have eliminated the option of allowing applicants to file a single,
joint BIP/BTOP application in the second funding round in favor of separate applications.
NTIA has sought to bring further leverage to federal funds by giving additional
consideration to projects that propose to contribute a non-federal cost share/match that equals or
exceeds 30 percent of the total eligible costs of the project.
In addition, NTIA is adopting a comprehensive communities approach to award BTOP
grants for infrastructure projects that emphasize Middle Mile broadband capabilities and new or
substantially upgraded connections to community anchor institutions to maximize the benefits of
BTOP funds. In adopting this approach, NTIA has restructured the Broadband Infrastructure
category of the First NOFA into the CCI category for this second round of funding.
Further, NTIA has implemented other targeted changes to several Program provisions. In
particular, NTIA has reduced the number of BTOPs eligibility factors to just three criteria
eligible entities, fully completed application, and matchingwhich will be used to determine
whether an application is eligible for consideration. NTIA has further streamlined the eligibility
review by removing the budget reasonableness and technical feasibility factors from the
eligibility requirements, because these categories are more effectively evaluated during the
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
10/116
10
expert review and due diligence phases of application consideration. NTIA also has changed the
number of expert reviewers from at least three to at least two in order to make the expert review
process as efficient as possible, without impacting the rigor of review. NTIA will review CCI
applications according to the priorities established in Section II.B. Additionally, NTIA has
clarified the process for requesting waivers from several key statutory and programmatic
obligations, including the matching fund requirement, Last Mile coverage obligation, and
restriction on the sale or lease of project assets.
With respect to the application, NTIA will now collect the information most essential to
project review in the application itself, with the option to collect additional data during the due
diligence review, as needed. In addition, NTIA has made numerous adjustments to the online
application system to streamline the intake of information and reduce applicant burden. In
particular, NTIA has reduced the overall number of attachments to the applications. It also has
separated the BTOP infrastructure application from the BIP infrastructure application and
separated the PCC application from the SBA application. Moreover, it has eliminated the
proposed funded service area mapping tool and modified the service area delineations from
Census blocks to Census tracts and block groups. NTIA also has made it easier for applicants
filing applications in multiple project categories to link these applications, in furtherance of
NTIAs focus on comprehensive communities.
II. Funding Opportunity Description
A. Statutory Purposes
Section 6001 of the Recovery Act establishes a national broadband service development
and expansion program to promote five core purposes:
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
11/116
11
a. To provide access to broadband service to consumers residing in unserved areas of the
country;
b. To provide improved access to broadband service to consumers residing in
underserved areas of the country;
c. To provide broadband education, awareness, training, access, equipment, and support
to: (i) schools, libraries, medical and healthcare providers, community colleges and other
institutions of higher learning, and other community support organizations; (ii) organizations and
agencies that provide outreach, access, equipment, and support services to facilitate greater use
of broadband services by vulnerable populations (e.g., low-income, unemployed, aged); or (iii)
job-creating strategic facilities located in state- or federally-designated economic development
zones;
d. To improve access to, and use of, broadband service by public safety agencies; and
e. To stimulate the demand for broadband, economic growth, and job creation.13
B. BTOP Priorities
All projects funded under BTOP must advance one or more of the five statutory purposes
outlined above. The Program is designed to extend broadband access to unserved areas, improve
access to underserved areas, and expand broadband access to a wide range of institutions and
individuals, including vulnerable populations. It will seek to serve the highest priority needs for
federal investmentparticularly projects that offer the potential for economic growth and job
creation. The Program will support viable, sustainable, and scalable projects.
13 See id. 6001(b), 123 Stat. at 51213.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
12/116
12
1. Comprehensive Community Infrastructure Projects
a. Background
In the first funding round, NTIA solicited Broadband Infrastructure applications in two
categories, Last Mile and Middle Mile. Last Mile projects were defined as any infrastructure
project the predominant purpose of which is to provide broadband service to end users or end-
user devices. Middle Mile projects were defined as any broadband infrastructure project that
does not predominantly provide broadband service to end users or to end-user devices and that
may include interoffice transport, backhaul, Internet connectivity, or special access. Middle Mile
projects funded to date in Round One also included expanding and enhancing broadband services
for community anchor institutions such as schools, libraries, colleges and universities, medical
and healthcare providers, public safety entities, and other community support organizations.
Recognizing the significant importance of Middle Mile infrastructure to improving
broadband capabilities for consumers residing in unserved and underserved areas of the nation,
NTIA has awarded a significant portion of funds in the first round of funding to Middle Mile
projects, particularly those that connect a significant number of community anchor institutions.
Such projects provide substantial benefits, including enhancing broadband service for
community anchor institutions, facilitating the development of Last Mile broadband services in
unserved and underserved areas, and promoting economic growth.
b. CCI Funding Priorities
In this round of funding, NTIA seeks to focus on Middle Mile projects by adopting a
comprehensive communities approach to awarding BTOP infrastructure grants. Under this
approach, priority will be given to CCI projects that include a Middle Mile component and
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
13/116
13
satisfy certain additional considerations.14 This prioritization will be used for the sequencing of
applications for the objective merit review performed by expert reviewers.15
In particular, the
highest priority for merit review will be given to CCI applications that satisfy all of the criteria
below. Note that the application evaluation process will continue to consider additional factors,
including, for example, the degree to which the projects will benefit consumers residing in
unserved or underserved areas, the participation of an Indian Tribe or socially and economically
disadvantaged small business concern as defined under Section 8(a) of the Small Business Act
(as modified by NTIAs adoption of an alternative small business concern size standard for use
in BTOP),
16
and the ability of a project to leverage funding from another Recovery Act program
or other state or federal development program.17 In order of importance, the CCI priority criteria
are set forth as follows:
(1) projects that will deploy Middle Mile broadband infrastructure with a commitment to
offer new or substantially upgraded service to community anchor institutions. Those projects
proposing to serve a significant number of community anchor institutions that have expressed a
demand or indicated a need for access or improved access to broadband service will receive
higher priority;
(2) projects that will deploy Middle Mile broadband infrastructure and incorporate a
public-private partnership among government, non-profit and for-profit entities, and other key
14 Consistent with the terms of the Recovery Act, in this funding round NTIA will not fund Middle Mile projects inareas that RUS has already funded with Middle Mile awards made through BIP.15 See Department of Commerce (DOC) Grants and Cooperative Agreements Interim Manual (Grants Manual), ch.8, sec. B.1.c. and B.3 (June 21, 2007) (available at http://oam.ocs.doc.gov/GMD_updated-doc.html).16 15 U.S.C. 637(a)(4). NTIA sought the Small Business Administrations approval to adopt a $40 millionalternative small business size standard for BTOP. The Small Business Administration issued a letter approving theuse of this alternative size standard of $40 million to define a small business concern for purposes of BTOP.17 See infra Section VII.A.1.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
14/116
14
community stakeholders, particularly those that have expressed a demand or indicated a need for
access or improved access to broadband service;
(3) projects that will deploy Middle Mile broadband infrastructure with the intent to
bolster growth in economically distressed areas;
(4) projects that will deploy Middle Mile broadband infrastructure with a commitment to
serve community colleges that have expressed a demand or indicated a need for access or
improved access to broadband service;
(5) projects that will deploy Middle Mile broadband infrastructure with a commitment to
serve public safety entities that have expressed a demand or indicated a need for access or
improved access to broadband service;
(6) projects that will deploy Middle Mile broadband infrastructure that includes (i) a Last
Mile infrastructure component in unserved or underserved areas; or (ii) commitments or non-
binding letters of intent from one or more Last Mile broadband service providers.18 For Last
Mile infrastructure components in rural areas, however, the additional costs of the Last Mile
component used to offer service to residential consumers and non-community anchor institutions
may not exceed more than 20 percent of the total eligible costs of the project; and
(7) projects that will deploy Middle Mile broadband infrastructure and propose to
contribute a non-federal cost match that equals or exceeds 30 percent of the total eligible costs of
the project.
To the extent that a CCI applicant with a Middle Mile component does not address all of
the criteria set forth above (i.e., criteria (1)-(7)), NTIA will prioritize those applications
remaining for merit review in the order that they satisfy the most highly-ranked criteria (i.e.,
18 Consistent with the terms of the Recovery Act, in this funding round NTIA will not fund Last Mile projects inareas that RUS has already funded with Last Mile awards made through BIP.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
15/116
15
applications satisfying criteria (1)-(6) will be sequenced for merit review, then applications
satisfying (1)-(5), then (1)-(4), then (1)-(3), then (1)-(2) respectively, and, finally, applications
that satisfy only the first criterion). All other CCI applicants with a Middle Mile component, that
is, those that do not satisfy the first criterion identified above, will be next in priority for merit
review.
c. Comprehensive Communities Policy Rationale
The comprehensive communities approach, with its focus on the deployment of Middle
Mile broadband facilities and the provision of new or substantially upgraded connections to
community anchor institutions as its centerpiece, will provide a number of benefits to the public
and taxpayers. Comprehensive communities projects can leverage resources and better ensure
sustainable community growth and prosperity. These projects also can create consumer demand
and lay the foundation for the ultimate provision of reasonably priced end-user broadband
services in unserved and underserved communities. Open and nondiscriminatory CCI projects
funded by BTOP will enable other service providers to serve the community. 19 Once Middle
Mile facilities are built, the costs of providing services to a broad array of end users are reduced.
Much like the interstate highways that link together the nations roads and streets, Middle Mile
broadband facilities play a critical role in the healthy functioning of the nations broadband
infrastructure and are a necessary foundation for the ultimate provision of affordable end-user
broadband services in unserved and underserved communities.
Expanding Middle Mile broadband service not only enhances the availability and
affordability of end-user broadband connectivity for consumers and businesses, it also increases
the effectiveness of community anchor institutions in fulfilling their missions. Schools, libraries,
19 See Recovery Act 6001(j), 123 Stat. at 515.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
16/116
16
colleges and universities, medical and healthcare providers, public safety entities, and other
community support organizations increasingly rely on high-speed Internet connectivity to serve
their constituencies and their communities. Expanding broadband capabilities for community
anchor institutions will result in substantial benefits for the entire community, delivering
improved education, healthcare, and economic development.
CCI projects are also job-intensive and pave the way for a ripple effect of economic
development throughout the communities they touch. Focusing the awards in this funding round
on CCI projects that provide high-speed Middle Mile networks to connect community anchor
institutions, including community colleges, or benefit consumers residing in unserved or
underserved areas will maximize the benefits of Recovery Act dollars and lay a foundation for
economic development for years to come.20
d. Relationship to BIP
Although BIP and BTOP no longer will offer a joint application, RUS and NTIA
continue to collaborate to maximize the impact of available federal funding, to best leverage the
experience and expertise of each agency, and to avoid geographic overlap in projects funded by
the two agencies (as required by the Recovery Act).21
To accomplish these objectives, NTIA
strongly recommends that CCI applicants that are currently RUS loan or grant recipients as well
as any CCI applicant whose project will include a Last Mile service area that is at least 75
percent rural apply to BIP for funding. Applications from such applicants will not be viewed
favorably by NTIA and will not be a funding priority.
20 See National Economic Council, Recovery Act Investments in Broadband: Leveraging Federal Dollars to CreateJobs and Connect America (Dec. 2009), available athttp://www.whitehouse.gov/sites/default/files/20091217-recovery-act-investments-broadband.pdf.21 Recovery Act Tit. I, 123 Stat. at 118.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
17/116
17
e. Exclusive Last Mile Projects
As explained above, priority will be given to CCI projects that include a Middle Mile
component. While a CCI project may exclusively contain a Last Mile component, it will only be
considered for merit review and funding after all projects with a Middle Mile component have
been considered.
2. Public Computer Centers (PCC)
In this funding round, consistent with the Recovery Act, NTIA will fund PCC projects.
These projects provide broadband access to the general public or a specific vulnerable population
and must either create or expand a public computer center or improve broadband service or
connections at a public computer center, including those at community colleges, that meets a
specific public need for broadband service. PCC projects are a logical complement to CCI
projects, because they are uniquely positioned to serve many members of a community with
computer equipment, computer training, job training, and access to job and educational resources
that might not otherwise be available.
3. Sustainable Broadband Adoption (SBA)
Consistent with the Recovery Act and the promotion of BTOPs five core objectives,
NTIA also will fund SBA projects. The SBA program is designed to fund innovative projects
that promote broadband demand, especially among vulnerable population groups where
broadband technology traditionally has been underutilized. Broadband technology has reshaped
the way our nation functions, and NTIA recognizes that broadband adoption projects strive to
ensure that as much of the population as possible has opportunities, abilities, and resources to
thrive in todays society. With projects focusing on broadband awareness, access, training, and
education, barriers to broadband adoption can be overcome, fostering educational and business
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
18/116
18
opportunities and a more competitive country as a whole. NTIA, therefore, seeks SBA projects
that, after establishing a subscribership baseline in a given community, demonstrate a clear
ability to measure and sustain the expected increase in broadband adoption without ongoing
federal grant assistance, so that the nation will continue to see the benefits of these projects well
after the period of performance for the grant award has ended.
C. Application Review and the Selection Process
1. Initial Review
NTIA will conduct an initial review of applications to determine whether they meet the
eligibility requirements set forth in Section V.A. through V.C. of this NOFA. These
requirements are mandatory, and applicants that fail to meet them will not have their applications
considered further.
2. Scoring Applications
Subsequent to this initial eligibility review, applications will be separated into the three
project categories. For PCC and SBA projects, applications will receive an Evaluation Criteria
Review score by at least two objective expert reviewers who may be federal employees or non-
federal persons. For CCI projects, program staff will prioritize the applications for the
Evaluation Criteria Review based on the BTOP priorities set forth in Section II.B., and then the
applications will be evaluated in priority order by at least two objective expert reviewers who
may be federal employees or non-federal persons. No consensus advice will be provided by the
non-federal expert reviewers.
Reviewers will be selected based on their expertise in: (i) analyzing a business or
organizational model pursuant to BTOP purposes; (ii) designing, funding, constructing, or
operating broadband networks or public computer centers; (iii) broadband-related outreach,
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
19/116
19
training, or education; (iv) innovative programs to increase the demand for broadband services;
or (v) other broadband-related functions or activities. Reviewers will evaluate applications
against the evaluation criteria provided in this NOFA and independently score each application.
Reviewer scores will be averaged and NTIA will establish thresholds that will be used to
determine which applications are considered highly qualified. Highly qualified applications
may be considered further for an award by NTIA Program staff and given a due diligence
review. For CCI projects, priority in due diligence processing will be given to applications that
best conform to BTOP priorities as expressed in Section II.B.1.b of this NOFA.
3. State and Tribal Consultation
The Recovery Act authorizes NTIA to consult with states, territories, possessions, and the
District of Columbia (states) regarding the identification of unserved and underserved areas
within their borders and the allocation of grant funds to projects in or affecting their state.22
After the application deadline, NTIA will invite each state, via its Governor, to provide input on
those geographic areas within the state for which NTIA should give priority in selecting projects
for funding. States may, if they wish, comment on specific BTOP applications that propose to
serve areas within their jurisdiction, regardless of the size or geographic scope of the project and,
at their discretion, provide an explanation for why certain applications meet the greatest needs of
the state. NTIA also will extend the invitation to tribal entities to comment upon applications
that propose to serve tribal communities in an effort to fund projects that best meet the needs of
their tribal lands.
NTIA will share data that are available on the publicly searchable application database
with each relevant state and tribe. States and tribes that wish to review additional information
22 Recovery Act 6001(c), 123 Stat. at 513.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
20/116
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
21/116
21
exist between the applicants original request and NTIAs determination of eligible costs and
funding priorities, including, for example, the right to adjust the federal share of the project.
Note that it is NTIAs intent to fund only the portion of the project that satisfies Program
purposes and is justified based on an analysis of anticipated costs and revenues. Specifically,
pursuant to the Recovery Act requirement that applicants demonstrate that a project would not
have been implemented during the grant period without federal assistance, NTIA may seek to
adjust the amount of funds made available for the federal share of the project to a level warranted
based on this but for test.23 Not all applicants contacted necessarily will receive a BTOP
award. Upon completion of due diligence, NTIA Program staff will summarize their analysis for
each application reviewed.
5. The Selection Process
The Director of BTOP (BTOP Director) will prepare and present a package or packages
of recommended grant awards to the Associate Administrator for the Office of
Telecommunications and Information Applications (OTIA Associate Administrator), or his/her
designee, for review and approval. The BTOP Directors recommendations and the OTIA
Associate Administrators review and approval will consider the following selection factors:
a. The Evaluation Criteria Review score of the objective expert reviewers;
b. The analysis of NTIA Program staff;
c. Satisfaction of the statutory purposes and BTOP priorities set forth in Section II.;
d. The extent to which the non-federal cost match equals or exceeds 30 percent of the
total eligible costs of the project;
23 See Recovery Act 6001(e)(3), 123 Stat. at 514.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
22/116
22
e. The geographic distribution of the proposed grant awards (e.g., ensuring that, to the
extent practical, NTIA awards not less than one grant in each state as set forth in the Recovery
Act);
f. The range of technologies and uses of the technologies employed by the proposed
grant awards;
g. Avoidance of redundancy, duplication, and conflicts with the initiatives of other
federal agencies, including Department of Agriculture loan and grant programs for broadband
services, applicable universal service programs authorized by the Federal Communications
Commission, and, to the extent practical, avoidance of unjust enrichment;
24
h. The availability of funds;
i. If applicable, the comments of states, including, but not limited to, such comments as
described in their application for the Broadband Mapping Program or as subsequently provided
to NTIA either on their own or along with the submission of state-level broadband maps;25 and
j. If applicable, the comments of tribal entities.
Upon approval of the OTIA Associate Administrator or designee, the BTOP Directors
recommendations then will be presented to the Selecting Official. The Assistant Secretary
selects the applications for grant awards, taking into consideration the BTOP Directors and the
OTIA Associate Administrators, or his or her designees, recommendations and the degree to
which the application package, taken as a whole, satisfies the selection factors described above
and the Programs statutory purposes and priorities as set forth in Sections II. of this NOFA.
24 Recovery Act 6001(h)(2)(D), 123 Stat. at 515.25 Consistent with the Recovery Act, the Broadband Mapping Program provides participating states the opportunityto identify unserved and underserved areas in their state.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
23/116
23
Awards will be made on a rolling basis subject to the availability of funds. Unsuccessful
applicants will be notified in writing.
III. Definitions
The terms and conditions provided in this NOFA are applicable to and for purposes of
this NOFA only.
Applicant means an entity requesting approval of an award under this NOFA.
Assistant Secretary means the Assistant Secretary for Communications and Information,
National Telecommunications and Information Administration, Department of Commerce, or the
Assistant Secretarys designee.
Award means a grant made under this NOFA by NTIA.
Awardee means a grantee.
Broadband means providing two-way data transmission with advertised speeds of at least
768 kilobits per second (kbps) downstream and at least 200 kbps upstream to end users, or
providing sufficient capacity in a Middle Mile project to support the provision of broadband
service to end users.
BTOPmeans the Broadband Technology Opportunities Program, administered by NTIA,
under the Recovery Act.
Build-out means the construction or improvement of facilities and equipment as specified
in the application.
Community anchor institutions means schools, libraries, medical and healthcare
providers, public safety entities, community colleges and other institutions of higher education,
and other community support organizations and agencies that provide outreach, access,
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
24/116
24
equipment, and support services to facilitate greater use of broadband service by vulnerable
populations, including low-income, the unemployed, and the aged.
Comprehensive Community Infrastructure (CCI) project means an infrastructure project
that focuses primarily on providing new or substantially upgraded connections to community
anchor institutions.
Economically distressed area means an area that has: (i) a per capita income of 80 percent
or less of the national average; and (ii) an unemployment rate that is, for the most recent 24-
month period for which data are available, at least one percent greater than the national average
unemployment rate.
26
Forecast period means the time period used by NTIA to determine if an application is
financially feasible. Financial feasibility of an application is based on eight-year projections.
GAAP means generally accepted accounting principles.
Grant agreement means the agreement between NTIA and the grantee for grants awarded
under this NOFA, including any amendments thereto, setting forth the binding terms and
conditions relating to federal funding under BTOP. Sample grant agreements are available for
review athttp://www.broadbandusa.govorhttp://www.ntia.doc.gov.
Grant funds means federal funds provided pursuant to a grant made under this NOFA.
Grantee means the prime recipient of a grant under this NOFA.
Last Mile means those components of a CCI project that provide broadband service to
end-user devices through an intermediate point of aggregation. That is, in most cases, the Last
Mile connection goes from the end-user device through an intermediate point of aggregation
26 This definition is derived from regulations adopted by the Economic Development Administration, U.S.Department of Commerce, regarding the Public Works and Economic Development Act of 1965, as amended. See13 C.F.R. 301.3.
http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.ntia.doc.gov/http://www.ntia.doc.gov/http://www.ntia.doc.gov/http://www.ntia.doc.gov/http://www.broadbandusa.gov/ -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
25/116
25
(i.e., a remote terminal, fiber node, wireless tower, or other equivalent access point) to a primary
IP routing entity in a centralized facility (i.e., in the central office, the cable headend, the
wireless switching station, or other equivalent centralized facility). The Last Mile also includes
equivalent services that, solely because of close proximity between the customer and centralized
facility, are routed directly to the centralized facility. The Last Mile will terminate at, and
include, the initial customer-facing router or aggregation switch in the centralized facility (e.g., a
DSLAM, CMTS, RNC, or equivalent) that is utilized to deliver Last Mile broadband service.
Last Mile service area means the service area of a Last Mile component of a CCI project,
composed of one or more contiguous Census block groups
27
or tracts,
28
where the applicant is
requesting BTOP funds to provide broadband service to end-user devices through an
intermediate point of aggregation and terminating at the initial customer-facing router or
aggregation switch in the centralized facility used to deliver the Last Mile broadband service.
Middle Mile means those components of a CCI project that provide broadband service
from one or more centralized facilities, (i.e., the central office, the cable headend, the wireless
switching station, or other equivalent centralized facility) to an Internet point of presence. The
Middle Mile includes, among other things, the centralized facilities and all of the equipment in
27 A Census block group is a cluster of Census blocks having the same first digit of their four-digit identifyingnumbers within a Census tract. A Census block group is the next level above Census block in the geographichierarchy.28 Census tracts are small, relatively permanent statistical subdivisions of a county. Census tracts are delineated formost metropolitan areas (MAs) and other densely populated counties by local Census statistical areas committees
following Census Bureau guidelines (more than 3,000 Census tracts have been established in 221 counties outsideMAs). Census tracts usually have between 2,500 and 8,000 persons and, when first delineated, are designed to behomogeneous with respect to population characteristics, economic status, and living conditions. Census tracts donot cross county boundaries. The spatial size of Census tracts varies widely depending on the density of settlement.Census tract boundaries are delineated with the intention of being maintained over a long time so that statisticalcomparisons can be made from Census to Census. However, physical changes in street patterns caused by highwayconstruction, new development, or other reasons may require occasional revisions; Census tracts occasionally aresplit due to large population growth, or combined as a result of substantial population decline. See the CensusBureaus website athttp://www.census.govfor more detailed information on its data gathering methodology.
http://www.census.gov/http://www.census.gov/http://www.census.gov/http://www.census.gov/ -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
26/116
26
those facilities, except for any equipment that would qualify as part of a Last Mile component as
defined in this NOFA.
Middle Mile service area means the project service area, composed of one or more
contiguous Census block groups or tracts, where the applicant is requesting BTOP funds to
provide broadband service from one or more centralized facilities, (i.e., the central office, the
cable headend, the wireless switching station, or other equivalent centralized facility) to an
Internet point of presence.
Pre-application expense means any reasonable expense incurred after the release of this
NOFA up to the issuance of the grant award from NTIA to prepare an application. These
expenses include engineering costs, accountant or other consultant fees, and costs related to
developing the proposal. Lobbying costs and contingency fees are not included as pre-
application expenses.
Proposed funded service area means the total service area of a CCI project where
broadband service will be provided.
Public computer center means a place, including but not limited to community colleges,
libraries, schools, youth centers, employment service centers, Native American chapter houses,
community centers, senior centers, assistive technology centers for people with disabilities,
community health centers, and Neighborhood Network Centers in public housing developments,
that provide broadband access to the general public or a specific vulnerable population, such as
low-income, unemployed, aged, children, minorities, and people with disabilities.
Recipient means any entity that receives Recovery Act funds directly from the federal
government (including Recovery Act funds received through a grant) other than an individual.
This includes a state that receives Recovery Act funds.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
27/116
27
Recovery Act means the American Recovery and Reinvestment Act of 2009, Pub. L. No.
111-5, 123 Stat. 115 (2009).
Rural area means any area, as confirmed by the latest decennial Census of the U.S.
Census Bureau, that is not located within: (i) a city, town, or incorporated area that has a
population of greater than 20,000 inhabitants; or (ii) an urbanized area contiguous and adjacent
to a city or town that has a population of greater than 50,000 inhabitants. For purposes of the
definition of rural area, an urbanized area means a densely populated territory as defined in the
latest decennial Census of the U.S. Census Bureau.
Socially and Economically Disadvantaged Small Business Concern means a firm,
together with its controlling interests and affiliates, with average gross revenue not exceeding
$40 million for the preceding three years, and that meets the definition of a socially and
economically disadvantaged small business concern under the Small Business Act.29
State means, for purposes of BTOP, a state or political subdivision thereof, the District of
Columbia, or a territory or possession of the United States.
Sub-recipient means an entity that expends Recovery Act funds received through a
subaward from a recipient to carry out a federal program but does not include an individual who
is a beneficiary of such a program.30
Tribe means an Indian tribe that has the meaning given that term in Section 4(e) of the
Indian Self-Determination and Education Assistance Act.31
29 15 U.S.C. 637(a)(4)(as modified by the Small Business Administrations approval of NTIAs request to adoptan alternative small business concern size standard for use in BTOP).30 Implementing Guidance for Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Actof 2009 (OMB M-09-21 June 22, 2009), available athttp://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-21.pdf.31 25 U.S.C. 450b(e).
http://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-21.pdfhttp://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-21.pdfhttp://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-21.pdf -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
28/116
28
Underserved area means a Last Mile or Middle Mile service area, where at least one of
the following factors is met: (i) no more than 50 percent of the households in the Last Mile or
Middle Mile service area have access to facilities-based, terrestrial broadband service at greater
than the minimum broadband transmission speed (set forth in the definition of broadband above);
(ii) no fixed or mobile terrestrial broadband service provider advertises to residential end users
broadband transmission speeds of at least three megabits per second (Mbps) downstream in the
Last Mile or Middle Mile service area; or (iii) the rate of terrestrial broadband subscribership for
the Last Mile or Middle Mile service area is 40 percent of households or less. An underserved
area may include individual Census block groups or tracts that on their own would not be
considered underserved. The availability of or subscribership rates for satellite broadband
service is not considered for the purpose of determining whether an area is underserved.
Unserved area means a Last Mile or Middle Mile service area where at least 90 percent of
the households lack access to facilities-based, terrestrial broadband service, either fixed or
mobile, at the minimum broadband transmission speed (set forth in the definition of broadband
above). An unserved area may include individual Census block groups or tracts that on their
own would not be considered unserved. A household has access to broadband service if the
household readily can subscribe to that service upon request. The availability of or
subscribership rates for satellite broadband service is not considered for the purpose of
determining whether an area is unserved.
IV. Award Information
A. General
Approximately $2.6 billion in budget authority has been set aside for funding
opportunities under this NOFA. Publication of this NOFA does not obligate NTIA to award any
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
29/116
29
specific project or obligate all of the available funds. Based on Round 1 experience, NTIA
expects this grant round to be very competitive. During Round 1, RUS and NTIA received
approximately 2,200 applications collectively requesting nearly $28 billion in federal funds.
B. Funding Limits
Approximately $2.6 billionis available to be awarded under this NOFA, which NTIA
anticipates will be allocated in the following categories:
a. Approximately $2.35 billion will be made available for CCI projects;
b. At least $150 million will be made available for PCC projects; and
c. At least $100 million will be made available for SBA projects.
C. Repooling
Subject to the statutory thresholds set forth in the Recovery Act, NTIA retains the
discretion to divert funds from one category of projects to another.
D. Unused Funds
Funds remaining from the initial round of funding due to BTOP funding priorities or any
other reason, and unused funds not awarded under the Broadband Mapping Program, may be
used to augment the BTOP funding categories established above.32
NTIA reserves the right to
reopen the application window or release subsequent NOFAs to ensure that all funds are awarded
by September 30, 2010.
E. Award Amount
Given NTIAs Round 1 experience, NTIA expects to make awards within the following
funding ranges. These ranges are not required minimums and maximums, but applicants
32 See supra note 6.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
30/116
30
requesting amounts for projects outside of these ranges must provide a reasoned explanation for
the variance in their project size.
CCI: $5 million - $150 million
PCC: $500,000 - $15 million
SBA: $500,000 - $15 million
F. Award Period
All awards under BTOP must be made no later than September 30, 2010.33
While the
completion time will vary depending on the complexity of the project, grant recipients must
substantially complete projects supported by this Program no later than two years, and projects
must be fully completed no later than three years, following the date of issuance of the grant
award.34
G. Type of Funding Instrument
The funding instrument will be a grant.
V. Eligibility Information for BTOP
Applicants must satisfy the eligibility requirements set forth below in Sections V.A.
through V.C. to qualify for funding. Applicants failing to comply with these requirements will
not be considered for an award.
A. Eligible Entities
1. Applicant Organization
The following entities are eligible to apply for funding:
a. States, local governments, or any agency, subdivision, instrumentality, or political
subdivision thereof;
33 Recovery Act 6001(d)(2), 123 Stat. at 513.34Id. 6001(d)(3), 123 Stat. at 513.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
31/116
31
b. The District of Columbia;
c. A territory or possession of the United States;
d. An Indian tribe (as defined in Section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b));
e. A native Hawaiian organization;
f. A non-profit foundation, a non-profit corporation, a non-profit institution, or a non-
profit association;
g. Other non-profit entities;
h. For-profit corporations;
i. Limited liability companies; and
j. Cooperative or mutual organizations.
2. BTOP Public Interest Finding
Section 6001(e)(1)(C) of the Recovery Act authorizes the Assistant Secretary to find by
rule that it is in the public interest for any entity not otherwise encompassed by Section
6001(e)(1) to be eligible for a BTOP grant to the extent that such finding will promote the
purposes of BTOP in a technology neutral manner. Consistent with the rationale set forth in the
First NOFA,35 the Assistant Secretary found it to be in the public interest to permit for-profit
corporations and non-profit entities (not otherwise encompassed by Section 6001(e)(1)(B)) that
are willing to promote the goals of the Recovery Act and comply with the statutory requirements
of BTOP to be eligible for a grant. By adopting this broad approach, the Assistant Secretary
intended to invite a diverse group of applicants to participate in BTOP and to expand broadband
35 See 74 Fed. Reg. at 33134 (July 9, 2009).
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
32/116
32
capabilities in a technology neutral manner.36 NTIA will continue to permit these same entities
to apply for funding in this next round of awards.
B. Fully Completed Application
All applications will be evaluated initially to ensure that they are fully complete,
certified, and contain all supporting documentation.
C. Cost Share/Matching
1. Matching Requirement
In general, awardees under BTOP are required by statute to provide matching funds of at
least 20 percent toward the total eligible costs of the project unless the Assistant Secretary grants
a waiver. For costs to be eligible to meet matching requirements, they first must be allowable
under the grant program. Eligible cost concepts are discussed in more detail in Section V.E. of
this NOFA. Applicants must document in their application their capacity to provide matching
funds. NTIA will provide up to 80 percent of the total eligible costs of the project, unless the
applicant petitions the Assistant Secretary for a waiver of the matching requirement and that
waiver is granted based on the applicants demonstration of financial need, as discussed below.37
Generally, federal funds may not be used as a cost match except as provided by federal
statute.38 In-kind contributions, including third party in-kind contributions, are non-cash
donations to a project that may count toward satisfying the non-federal matching requirement of
a projects total budgeted costs. In-kind contributions must be allowable project expenses. Such
36 Recovery Act 6001(e)(1)(C), 123 Stat. at 513; 74 Fed. Reg. at 33110.37 See id. 6001(f), 123 Stat. at 514.38 See Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals, OtherNonprofit, andCommercial Organizations, 15 C.F.R. 14.23(a)(5); see also UniformAdministrative Requirements for Grants and Cooperative Agreements to State and Local Governments, 24 C.F.R. 24.24(b)(1).
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
33/116
33
contributions may be accepted as part of an applicants matching costs when such contributions
meet certain criteria.39
Applicants that propose to provide a cost match that is all cash will be given additional
favorable consideration in the application review process. Additionally, applicants will be given
favorable consideration in the selection process by proposing to contribute a non-federal cost
match that equals or exceeds 30 percent of the total eligible costs of the projects. CCI applicants
are strongly encouraged to not request more federal funding than they require to make the project
financially feasible and sustainable.40
2. Petition for Waiver
In requesting a waiver of the matching requirement, an applicant should fully explain and
document its inability to provide the required 20 percent matching share of the eligible costs of
the proposed project. In demonstrating financial need, the applicant should submit: (1)
documents that include the applicants assets, liabilities, operating expenses, and revenues from
any existing operations; (2) denial of funding from a public or private lending institution; or (3)
any other documents that demonstrate financial need. Mere statements of financial need without
supporting documentation will not be viewed favorably. The petition for waiver and
documentation must be set forth clearly in the application. The Assistant Secretary will evaluate
the information provided in support of the petition and may increase the federal share if financial
need is demonstrated.
39 See 15 C.F.R. 14.23(a), 24.24(a).40 See supra Section II.C.4.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
34/116
34
D. General Program Requirements
1. Timely Completion
Applicants must demonstrate that the project can be substantially completed within two
years of the start date of the grant award and fully completed no later than three years following
the date of issuance of the grant award. A BTOP project is considered substantially complete
when a grantee has met 67 percent of the project milestones and received 67 percent of its award
funds. In evaluating compliance with this factor, NTIA will consider the planned start date of
the project; the reasonableness of the project timeline and associated milestones; whether the
applicant will be able to secure all licenses, franchises, and regulatory approvals required to
complete the project; whether the applicant will be able to meet all environmental requirements;
and whether the required contractors and vendors necessary to implement the project are
prepared to enter into contracts as soon as the funds are made available.
In view of the urgent need for additional economic stimulus, however, NTIA strongly
encourages applicants to fully complete their projects within the two-year time period from the
date of issuance of the award.
2. Demonstration that Project Could not be Implemented But For Federal Grant
Assistance
Grant applicants must provide documentation that the project would not have been
implemented during the grant period without federal grant assistance.41
This documentation may
consist of, but is not limited to, such items as a denial of funding from a public or private lending
institution, a current fiscal year budget that shows the lack of available revenue options for
41 See supra note 23.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
35/116
35
funding the project, or a business case that demonstrates that the project would not be
economically feasible without grant financing.
3. Additional Requirements Applicable to Comprehensive Community Infrastructure
Applicants
a. Broadband Service
All CCI applicants must propose to offer service meeting the definition of broadband as
defined in Section III.
b. Nondiscrimination and Interconnection
All CCI applicants must commit to the following Nondiscrimination and Interconnection
Obligations: 42 (i) adhere to the principles contained in the FCCs Internet Policy Statement
(FCC 05-151, adopted August 5, 2005) or any subsequent ruling or statement; (ii) not favor any
lawful Internet applications and content over others; (iii) display any network management
policies in a prominent location on the service providers web page and provide notice to
customers of changes to these policies (awardees must describe any business practices or
technical mechanisms they employ, other than standard best efforts Internet delivery, to allocate
capacity; differentiate among applications, providers, or sources; limit usage; and manage illegal
or harmful content); (iv) connect to the public Internet directly or indirectly, such that the project
is not an entirely private closed network; and (v) offer interconnection, where technically
feasible without exceeding current or reasonably anticipated capacity limitations, at reasonable
rates and terms to be negotiated with requesting parties. This includes both the ability to connect
to the public Internet and physical interconnection for the exchange of traffic. Applicants must
42 Nothing herein shall be construed to affect the jurisdiction of the FCC with respect to such matters.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
36/116
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
37/116
37
the dispute. If the FCC chooses to take no action, those seeking recourse may notify NTIA in
writing about the alleged failure to adhere to commitments of the award.
These conditions apply to the awardee and will remain in effect for the life of the
awardees federally funded facilities and equipment used in the project. These conditions will
not apply to any existing network arrangements or to non-awardees using the network. Note,
however, that the awardee may negotiate contractual covenants with other broadband service
providers engaged to deploy or operate the network facilities and pass these conditions through
to such providers. Awardees that fail to accept or comply with the terms listed above may be
considered in default of their grant agreements. NTIA may exercise all available remedies in the
event of a default, including suspension of award payments or termination of the award.43
c. Last Mile Coverage Obligation
i. Service Obligation
An applicant for a CCI project that includes a Last Mile component must identify the
Last Mile service area(s) selected for the project. There is a presumption that the applicant will
provide service to the entire Last Mile service area(s).
ii. Petition for Waiver
An applicant may petition for a waiver of the Last Mile Coverage Obligation if it
provides a reasoned explanation as to why providing service or coverage for the entire Last Mile
service area is extremely burdensome for the applicant. In considering whether providing
service or coverage is extremely burdensome, the applicant must explain whether there are any
legal, technical, or financial impediments to covering each Census block group or tract. Mere
statements regarding the burden to serve an area without supporting documentation will not be
43Note that the changes made to this section from the First NOFA are meant to clarify, and not change, applicantsobligations.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
38/116
38
viewed favorably. The petition for waiver and documentation must be set forth clearly in the
application. Applicants may be permitted to serve less than an entire Census block group or tract
under certain conditions. For example, an applicant might request to be relieved of this
requirement if the Census block group or tract exceeds 100 square miles or more or is larger than
the applicants authorized operating territory (e.g., it splits a rural incumbent local exchange
carriers (ILECs) study area or exceeds the boundaries of a wireless carriers licensed territory).
Where applicable, an applicant seeking a waiver also should include information regarding the
characteristics of the Last Mile service area (e.g., data showing whether broadband services
already are available in the proposed unserved territory by more than one service provider or
information regarding terrain, acreage, population, etc.) and costs (e.g., pro forma financial
projections or estimated applicant cost/burden to provide broadband service to the remainder of
the area).
d. Announcement of Proposed Funded Service Areas
In the interests of promoting transparency and strengthening the selection process, NTIA
will post an announcement identifying each CCI application it has received, along with a list of
the Census block groups or tracts that each infrastructure applicant has proposed to serve through
its project, athttp://www.broadbandusa.gov. The posting of this announcement will provide
existing broadband service providers with a 15-day window voluntarily to submit to NTIA
information about the broadband services they currently offer in their respective service
territories by Census block group or tract. If an existing broadband service provider submits a
response outside of the 15-day period, NTIA may not consider this information in its evaluation
of an applicants Last Mile or Middle Mile service area(s).
http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.broadbandusa.gov/ -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
39/116
39
NTIA will consider the comments of existing broadband service providers as a factor in
its evaluation of the applicants Last Mile or Middle Mile service area(s)44
provided that they
include the following information, some of which will be made public: (1) the name of the
company providing information on its broadband service offerings; (2) a summary describing the
information the provider has presented to NTIA; (3) the number of households and businesses
that have access to broadband service in the providers service territory by Census block group
or tract; (4) the type of broadband services the provider offers in its service territory by Census
block group or tract and the technology used to provide those services, including, for wireless
carriers, the spectrum that is used; (5) the prices at which the broadband services are offered; (6)
the speed of the broadband services that are offered; (7) the number of subscribers that the
provider currently has for each of the broadband services it offers in its service territory by
Census block group or tract; and (8) optionally, a list of the providers Points of Presence (POPs)
in or near Census block groups or tracts listed by the announcement.
The information submitted by an existing broadband service provider relating to items (3)
through (8) enumerated above will be treated as proprietary and confidential to the extent
permitted under applicable law. The information described in items (1) and (2) above, which
includes the identity of the company submitting information and a summary of its response, will
be made publicly available. NTIA will post athttp://www.broadbandusa.gova list of the Census
block groups or tracts in which existing broadband service providers have indicated that they
provide broadband service. NTIA may consider any information submitted by existing
broadband service providers as relevant to its prioritization and review of CCI applications and
as part of its evaluation of the merits of a highly qualified CCI application. NTIA will contact
44See infra Section VII.A.1.
http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.broadbandusa.gov/http://www.broadbandusa.gov/ -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
40/116
40
the applicant as necessary for additional information to evaluate the unserved or underserved
status of its Last Mile or Middle Mile service area(s), if applicable, and may take other data, such
as existing state broadband maps and FCC Form 477 data, into account during this examination.
E. Funding Restrictions - Eligible and Ineligible Costs
1. General
Grant funds that NTIA awards may not necessarily be used to pay for all of the costs that
the grant recipient incurs in carrying out the project. Specifically, grant funds must be used only
to pay for eligible costs. Eligible costs are consistent with the cost principles identified in the
applicable OMB circulars
45
and in the grant programs authorizing legislation. In addition, costs
must be reasonable, allocable, necessary to the project, and conform to GAAP. For CCI projects,
eligible costs are generally capital expenses, and not operating expenses. An applicant proposing
to use any portion of the grant funds for any ineligible cost will be instructed to revise its
proposed budget to remove such costs prior to the award of a grant.46 A more detailed discussion
of the eligible and ineligible costs that are applicable to each BTOP project category is set forth
in the following sections.
45 For example, there is a set of federal principles for determining eligible or allowable costs. Allowability of costswill be determined in accordance with the cost principles applicable to the entity incurring the costs. Thus,allowability of costs incurred by state, local or federally-recognized Indian tribal governments is determined inaccordance with the provisions of OMB Circular A87, Cost Principles for State, Local and Indian TribalGovernments. The allowability of costs incurred by nonprofit organizations is determined in accordance with theprovisions of OMB Circular A122, Cost Principles for Non-Profit Organizations. The allowability of costsincurred by institutions of higher education is determined in accordance with the provisions of OMB Circular A21,
Cost Principles for Educational Institutions. The allowability of costs incurred by hospitals is determined inaccordance with the provisions of Appendix E of 45 C.F.R. 74, Principles for Determining Costs Applicable toResearch and Development under Grants and Contracts with Hospitals. The allowability of costs incurred bycommercial organizations and those nonprofit organizations listed in Attachment C to Circular A122 is determinedin accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 C.F.R. pt. 31. See 15 C.F.R. 14.27, 24.22 (governing the Department of Commerces implementation of OMB requirements).46 BTOP CCI applicants and PCC applicants will be directed to revise SF-424A (for non-construction projects) orSF-424C (for construction projects). SBA applicants will be directed to revise SF-424A (for non-constructionprojects).
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
41/116
41
In general, a project will incur both direct and indirect costs. Direct and indirect costs
may be reimbursed from grant funds provided that they fall within the approved eligible cost
categories discussed below.
a. Direct Costs of a BTOP Project
Direct costs are those that are directly related and traceable to the cost of the project
being supported. Direct costs of a project may be charged to the award if they are allowable
costs and are included within approved budget categories.
b. Indirect Costs of a BTOP Project
NTIA has the discretion to consider indirect costs as eligible expenses under BTOP. For
CCI projects, reasonable indirect costs associated with the construction, deployment, or
installation of facilities and equipment used to provide broadband service as described in Section
V.E.2. will be considered eligible provided that they are included as a line item in the applicants
budget and the applicant has established, or commits to apply for, an approved indirect cost rate.
For PCC and SBA projects, reasonable indirect costs associated with eligible project activities as
detailed in Sections V.E.3. and V.E.4. will be considered eligible costs provided they are
included as a line item in the applicants budget and the applicant has established, or commits to
apply for, an approved indirect cost rate. The process for establishing an indirect cost rate with
the DOC is described in a document entitled General Indirect Cost Rate Program Guidelines for
Grantee Organizations and can be found on the Department of Commerce website.47
Applicants that do not have an approved indirect cost rate will have 90 days from the award start
date to apply to have a rate established.
47 Seehttp://oam.ocs.doc.gov/docs/DOC%20IDC%20Ext%20Policy.v6.doc.
http://oam.ocs.doc.gov/docs/DOC%20IDC%20Ext%20Policy.v6.dochttp://oam.ocs.doc.gov/docs/DOC%20IDC%20Ext%20Policy.v6.dochttp://oam.ocs.doc.gov/docs/DOC%20IDC%20Ext%20Policy.v6.dochttp://oam.ocs.doc.gov/docs/DOC%20IDC%20Ext%20Policy.v6.doc -
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
42/116
42
2. Eligible and Ineligible Costs for BTOP Comprehensive Community Infrastructure
Projects
a. Eligible Costs for Comprehensive Community Infrastructure Projects
Grant funds may be used to pay for the following expenses:
i. To fund the construction or improvement of all facilities required to provide
broadband service;48
ii. To fund the cost of long-term leases (for terms greater than one year) of facilities
required to provide broadband service, including indefeasible right-of-use (IRU) agreements;
iii. To fund reasonable pre-application expenses in an amount not to exceed five
percent of the award. Pre-application expenses, which include expenses related to preparing an
application, may be reimbursed if they are incurred after the publication date of this NOFA and
prior to the date of issuance of the grant award from NTIA, except that lobbying costs and
contingency fees are not reimbursable from BTOP funds;
iv. To fund reasonable indirect costs consistent with the principles outlined in
Section V.E.1. of this NOFA; and
v. Undertaking such other projects and activities as the Assistant Secretary finds to
be consistent with the purposes for which the Program is established.
b. Ineligible Costs for Comprehensive Community Infrastructure Projects
Grant funds may not be used for any of the following purposes:
i. To fund operating expenses of the applicant;
48 These facilities and equipment may include, for example, but are not limited to, the costs associated withcomplying with all applicable legal requirements, such as the Communications Assistance for Law Enforcement Act(CALEA). Seeinfra Section X.P.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
43/116
43
ii. To fund costs incurred prior to the date on which the application is submitted, with
the exception of eligible pre-application expenses;
iii. To fund an acquisition of an affiliate, including the acquisition of the stock of an
affiliate;
iv. To fund the purchase or lease of any vehicle other than those used primarily in
construction or system improvements;
v. To fund the merger or consolidation of entities; or
vi. To fund costs incurred in acquiring spectrum as part of an FCC auction or in a
secondary market acquisition.
3. Eligible and Ineligible Costs for Public Computer Center Projects
a. Eligible Costs for Public Computer Center Projects
Projects under this category are aimed at expanding broadband access and capacity at
community anchor institutions, organizations serving vulnerable populations, or job-creating
strategic facilities located in state- or federally designated economic development areas as well
as stimulating broadband demand, economic growth, and job creation. Grantees may use BTOP
funding to expand public computer center capacity by:
i. Acquiring broadband-related equipment, instrumentation, networking capability,
hardware and software, and digital network technology for broadband services, including the
purchase of word processing software, computer peripherals, such as mice and printers, and
computer maintenance services and virus-protection software;
ii. Developing and providing training, education, support, and awareness programs or
web-based resources, including reasonable compensation for qualified instructors, technicians,
managers, and other employees essential for these types of programs;
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
44/116
44
iii. Facilitating access to broadband services, including, but not limited to, making
public computer centers accessible to the disabled;
iv. Installing or upgrading broadband facilities on a one-time, capital improvement,
basis in order to increase broadband capacity;
v. Constructing, acquiring, or leasing a new facility, provided that the applicant
explains why it is necessary to construct, acquire, or lease a new facility to facilitate public
access to broadband services or expand computer center capacity;
vi. Funding reasonableindirect costs consistent with the principles outlined in
Section V.E.1. of this NOFA;
vii. Undertaking such other projects and activities as the Assistant Secretary finds to
be consistent with the purposes for which the Program is established; and
viii. Paying for reasonable pre-application expenses in an amount not to exceed five
percent of the award. Pre-application expenses, which include expenses related to preparing an
application, may be reimbursed if they are incurred after the publication date of this NOFA and
prior to the date of issuance of the grant award from NTIA, except that lobbying costs and
contingency fees are not reimbursable from BTOP funds.
While some of the costs associated with the activities enumerated above may be properly
classified as operating expenses, an applicant should describe in its application how it intends to
cover the operating expenses of the project after the grant period expires.
-
8/14/2019 BTOP NOFA 1-15-10 With Disclaimer (NOFA-2 BTOP)
45/116
45
b. Ineligible Costs for Public Computer Center Projects
BTOP grant funds may not be used to fund purchases that are not used predominantly for
expanding public access to broadband service or enhancing broadband capacity at public
computer center locations.
4. Eligible and Ineligible Costs for Sustainable Broadband Adoption Projects
a. Eligible Costs for Sustainable Broadband Adoption Projects
Projects under this category are aimed at providing broadband education, awareness,
training, access, equipment, and support in order to stimulate sustainable adoption of broadband
services by individuals, households, and community anchor institutions. In this context,
sustainable means adoption (i.e., subscription to broadband service)